Transactions
Recent Transactions
At US Capital, we specialize in providing investment banking and lending solutions for small- to middle-market companies. Below is a selection of some of our recent transactions. As you will see, we are able to serve as a direct lender, co-lender, and lead financial arranger. This widens our scope to secure the best possible financing for our clients. We also offer specialist advisory and financial restructuring services.
Click on a transaction below for details.
Imagenetix, Inc. | $1.5 Million, Financing
Client
Imagenetix is a California-based public company traded on NASDAQ (Symbol: IAGX). Headquartered in San Diego, the company is a growing innovator of scientifically tested, proprietary bioceutical products. It develops, formulates and markets natural-based, over-the-counter skincare products, topical creams, and nutritional supplements.
Scenario
Imagenetix was being hindered by working capital constraints. To support its ongoing expansion, the company approached US Capital for a working capital line of credit. The challenge for US Capital was to arrange suitable financing for Imagenetix despite the company’s AR and inventory collateral possessing some retail credit risk.
Solution
Serving as sole arranger, US Capital was able to successfully arrange a $1.5 million senior secured credit facility for Imagenetix. This included an AR and inventory line of credit, which maximized Imagenetix’s borrowing eligibility and provided the company with the liquidity it needed. US Capital has particular expertise in underwriting AR and inventory collateral that possesses retail credit risk.
Transport Agent Grid, LP | $1.5 Million, Financing
Client
Transportation Agent Grid, LP ("TAG") is a growing operations and logistics resource business for California-based independently-owned local and regional on-call delivery companies. TAG is headquartered in Newark, CA.
Scenario
TAG needed additional financing to expand its operations to Seattle and Chicago. However, TAG's previous lenders were unable to finance the partnership's trade receivables. To support its ongoing domestic growth, TAG needed to move its financing from a term-loan structure to a revolving line of credit based on its trade accounts receivable.
Solution
Through a careful analysis of TAG's collateral base, US Capital was able to understand TAG's trade receivables from a credit perspective. This made it possible for US Capital to bring in lenders under a new, improved structure. Working with its affiliates, US Capital secured a $1.5 million senior secured credit facility for TAG. The new credit facility served to refinance TAG's previous line of credit and to finance its receivables.
Speculative Product Design, Inc. | $4.5 Million, Refinancing
Client
Speculative Product Design, Inc. ("Speck") is a leading designer and manufacturer of electronic accessories. Headquartered in Palo Alto, CA, Speck is best-known for creating refreshing designs that offer quality, thoughtful features, and distinctive style. Its line of products can be found worldwide at Apple retail stores and at most major electronics dealers.
Scenario
Speck wanted to capitalize on upcoming commercial growth opportunities, but needed financing that was affordable and intelligently structured. Speck's lender was deleveraging the inventory financing available to the company and was unable to provide additional funds. Speck was therefore looking to refinance its line of credit and increase its borrowing availability, to support the company's continued domestic and international growth.
Solution
Serving as lead arranger, US Capital was able to arrange a $4.5 million senior secured credit facility for Speck. The credit facility served to refinance Speck's previous line of credit, and included an inventory revolver and an AR line of credit for both domestic and international assets. Working with its many affiliates, US Capital successfully structured and arranged an optimal financing arrangement for Speck.
Southwestern Security Product Company | $1 Million, Financing
Client
This southwestern security product company designs and manufactures "knowledge-based" synthetic armor products for the military, police, and commercial sectors globally. Its range of products include body armor, vehicle armor, aircraft armor, energy asset protection, and infrastructure protection.
Scenario
This company was in cash-burn mode, sales were low, and key contracts had to be fulfilled, but there was insufficient working capital to finance the manufacturing to fulfill purchase orders. The company had fixed assets (equipment) and accounts receivable, but the fixed assets were not financeable by its regional bank and the accounts receivable had concentration issues and were foreign.
Solution
US Capital was able to collateralize both the equipment, at auction values, and the foreign and domestic receivables. Working with its Illinois- and Florida-based lender affiliates, US Capital was able to successfully structure financing so that this company could fulfill its orders and continue its operations. The total capital provided to the company is $1 million, through a senior credit facility of $500,000 and a senior term loan of $500,000.
Consensus Orthopedics | $4 Million, Refinancing
Client
Consensus Orthopedics, Inc. is a $15-million US-based medical artificial joint implant manufacturer with global distribution. It has been operating for 15 years, is professionally managed, and started becoming profitable in 2009.
Scenario
Consensus approached US Capital for a structured equipment sale leaseback to provide working capital and to finance the acquisition of new equipment prior to becoming profitable. It also needed to refinance some of its existing debt and to secure a bridge to a new credit facility.
Solution
US Capital has worked with Consensus over the past three years as an advisor, direct lender, co-lender, and sole arranger to secure over $4 million in additional capital for the company. US Capital has refinanced the company's AR line of credit, provided an asset-based term loan, and funded a new inventory line of credit. US Capital has also extensively advised Consensus on a recent $2 million equity raise and on new distribution relationships.
A&E Engineering, Inc. | $2.35 Million, Acquisition
Client
A&E Engineering, Inc. is a profitable US manufacturer of precision aerospace parts and components. The company has been in operation for five years.
Scenario
A&E Engineering wanted to acquire a new manufacturing facility and new equipment for expansion. It also sought a sale leaseback and an accounts receivable line of credit for additional working capital.
Solution
US Capital served as a direct lender, co-lender, and sole arranger for A&E Engineering, securing a total of $2.35 million for the company. US Capital provided an equipment leasing line of credit, a sale leaseback of existing equipment, a new building acquisition term loan, and an accounts receivable line of credit.
Bio Fuels Manufacturer | $24 Million, Financing
Client
This company was a highly promising bio fuels processor and distributor. It was a startup business with contributed plant and equipment.
Scenario
The start up required working capital to purchase initial raw materials, as well as growth financing to scale the business to $200 million. It approached US Capital for a bridge loan to purchase materials, for an equipment sale leaseback for additional working capital, and for an accounts receivable line of credit to finance business growth.
Solution
US Capital was able to provide the bridge loan, the equipment sale leaseback, and the accounts receivable line of credit. As a direct lender, co-lender, and sole arranger, US Capital secured a total of $24 million for the company.
